US dollar, 10Y Treasury yield, gold, and oil rally on geopolitical escalation
The geopolitical risk premium has expanded considerably following the coordinated US-Israeli operation against Iranian territory initiated on Saturday, 28 February. In response, Tehran launched strikes against Israeli territory—supported by Hezbollah in Lebanon—while targeting US military bases across the Middle East. Critically, Iran has announced the closure of the Strait of Hormuz, a strategic maritime artery through which approximately 20% of the world’s oil supply transits. Analysts warn that should the conflict persist or widen, it risks evolving into a broader regional conflict. As a result, gold, crude oil, the dollar index, and US Treasury yields, appreciated significantly as the session closed.
In the energy markets, the Brent crude futures contract (BRNK26) surged…
